§2611. Generation-skipping transfer defined — Inbound Citations

Citations to §2611(a)

• 26 U.S.C. § 303(d)

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  (d) Where stock in a corporation is the subject of a generation-skipping transfer (within the meaning of section 2611(a)) occurring at the same time as and as a result of the death of an individual—

  (1) the stock shall be deemed to be included in the gross estate of such individual;

  (2) taxes of the kind referred to in subsection (a)(1) which are imposed because of the generation-skipping transfer shall be treated as imposed because of such individual’s death (and for this purpose the tax imposed by section 2601 shall be treated as an estate tax);

  (3) the period of distribution shall be measured from the date of the generation-skipping transfer; and

  (4) the relationship of stock to the decedent’s estate shall be measured with reference solely to the amount of the generation-skipping transfer.
• 26 U.S.C. § 2601

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  A tax is hereby imposed on every generation-skipping transfer (within the meaning of subchapter B).
• 26 U.S.C. § 2603(b)

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  (b) Unless otherwise directed pursuant to the governing instrument by specific reference to the tax imposed by this chapter, the tax imposed by this chapter on a generation-skipping transfer shall be charged to the property constituting such transfer.
• 26 U.S.C. § 2624(a)

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  (a) Except as otherwise provided in this chapter, property shall be valued as of the time of the generation-skipping transfer.
• 26 U.S.C. § 2632(c)(3)(B)

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  (B) The term “GST trust” means a trust that could have a generation-skipping transfer with respect to the transferor unless—

  (i) the trust instrument provides that more than 25 percent of the trust corpus must be distributed to or may be withdrawn by one or more individuals who are non-skip persons—

  (I) before the date that the individual attains age 46,

  (II) on or before one or more dates specified in the trust instrument that will occur before the date that such individual attains age 46, or

  (III) upon the occurrence of an event that, in accordance with regulations prescribed by the Secretary, may reasonably be expected to occur before the date that such individual attains age 46,

  (ii) the trust instrument provides that more than 25 percent of the trust corpus must be distributed to or may be withdrawn by one or more individuals who are non-skip persons and who are living on the date of death of another person identified in the instrument (by name or by class) who is more than 10 years older than such individuals,

  (iii) the trust instrument provides that, if one or more individuals who are non-skip persons die on or before a date or event described in clause (i) or (ii), more than 25 percent of the trust corpus either must be distributed to the estate or estates of one or more of such individuals or is subject to a general power of appointment exercisable by one or more of such individuals,

  (iv) the trust is a trust any portion of which would be included in the gross estate of a non-skip person (other than the transferor) if such person died immediately after the transfer,

  (v) the trust is a charitable lead annuity trust (within the meaning of section 2642(e)(3)(A)) or a charitable remainder annuity trust or a charitable remainder unitrust (within the meaning of section 664(d)), or

  (vi) the trust is a trust with respect to which a deduction was allowed under section 2522 for the amount of an interest in the form of the right to receive annual payments of a fixed percentage of the net fair market value of the trust property (determined yearly) and which is required to pay principal to a non-skip person if such person is alive when the yearly payments for which the deduction was allowed terminate.

  For purposes of this subparagraph, the value of transferred property shall not be considered to be includible in the gross estate of a non-skip person or subject to a right of withdrawal by reason of such person holding a right to withdraw so much of such property as does not exceed the amount referred to in section 2503(b) with respect to any transferor, and it shall be assumed that powers of appointment held by non-skip persons will not be exercised.
• 26 U.S.C. § 2641(a)

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  (a) For purposes of this chapter, the term “applicable rate” means, with respect to any generation-skipping transfer, the product of—

  (1) the maximum Federal estate tax rate, and

  (2) the inclusion ratio with respect to the transfer.
• 26 U.S.C. § 2642(a)(1)

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  (1) Except as otherwise provided in this section, the inclusion ratio with respect to any property transferred in a generation-skipping transfer shall be the excess (if any) of 1 over—

  (A) except as provided in subparagraph (B), the applicable fraction determined for the trust from which such transfer is made, or

  (B) in the case of a direct skip, the applicable fraction determined for such skip.
• 26 U.S.C. § 2642(f)(3)(A)

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  (A) the date on which there is a generation-skipping transfer with respect to such property, or
• 26 U.S.C. § 2651(e)(1)

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  (1) For purposes of determining whether any transfer is a generation-skipping transfer, if—

  (A) an individual is a descendant of a parent of the transferor (or the transferor’s spouse or former spouse), and

  (B) such individual’s parent who is a lineal descendant of the parent of the transferor (or the transferor’s spouse or former spouse) is dead at the time the transfer (from which an interest of such individual is established or derived) is subject to a tax imposed by chapter 11 or 12 upon the transferor (and if there shall be more than 1 such time, then at the earliest such time),

  such individual shall be treated as if such individual were a member of the generation which is 1 generation below the lower of the transferor’s generation or the generation assignment of the youngest living ancestor of such individual who is also a descendant of the parent of the transferor (or the transferor’s spouse or former spouse), and the generation assignment of any descendant of such individual shall be adjusted accordingly.
• 26 U.S.C. § 2653(a)(1)

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  (1) there is a generation-skipping transfer of any property, and
• 26 U.S.C. § 2653(b)(2)(A)

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  (A) If the generation-skipping transfer referred to in subsection (a) involves the transfer of property from 1 trust to another trust (hereinafter in this paragraph referred to as the “pour-over trust”), the inclusion ratio for the pour-over trust shall be determined by treating the nontax portion of such distribution as if it were a part of a GST exemption allocated to such trust.
• 26 U.S.C. § 2654(a)(1)

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  (1) Except as provided in paragraph (2), if property is transferred in a generation-skipping transfer, the basis of such property shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 with respect to the transfer which is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. The preceding shall be applied after any basis adjustment under section 1015 with respect to the transfer.
• 26 U.S.C. § 2661(1)

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  (1) except as provided in paragraph (2), all provisions of subtitle F (including penalties) applicable to the gift tax, to chapter 12, or to section 2501, are hereby made applicable in respect of the generation-skipping transfer tax, this chapter, or section 2601, as the case may be, and
• 26 U.S.C. § 2661(2)

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  (2) in the case of a generation-skipping transfer occurring at the same time as and as a result of the death of an individual, all provisions of subtitle F (including penalties) applicable to the estate tax, to chapter 11, or to section 2001 are hereby made applicable in respect of the generation-skipping transfer tax, this chapter, or section 2601 (as the case may be).